August 27, 2012 10:10 AM | 1 min read |
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
In a report published Monday, Morgan Stanley reiterated its Overweight rating on Shanda Games (NASDAQ: GAME), but slightly lowered its price target from $5.80 to $5.50.Morgan Stanley noted, “GAME's 2Q sales dropped 14% YoY, hurt by the weaker core games performance. Despite stronger seasonality, 3Q sales are expected to drop 4-5% QoQ (down 20-21% YoY). The company is in a product cycle transition, where its new potential ‘hits', such as RIFT, may rekindle its growth...What we liked: 1) GAME enjoys a deep game portfolio of 39 titles, with 19 new games in the pipeline. 2) Thanks to the better cost control, its operating costs dropped 20% QoQ and YoY. Its operating margin grew 4ppts YoY to 31%. 3) Net cash of US$480mn accounts for over half of its market value. It may further buyback US$86mn of shares (~9% of its market value).”Shanda Games closed on Friday at $3.33.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
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